From the debate around appropriate use of AI, to the merits of adopting a skills-based approach, how companies hire is shifting fast with external factors influencing how organisations attract, assess and onboard talent more than ever before. Here are five high-level trends shaping the recruitment landscape and what they mean for your strategy.

These are not theoretical forecasts; they’re happening now. Based on data from industry reports and in-house insights, we show you how your business can stay ahead, make smarter hiring decisions, and create a better experience for candidates.

AI and automation need balance

AI is streamlining recruitment tasks like CV screening and interview scheduling. In theory, hiring managers and recruiters now have more time for strategy and candidate engagement. It’s improving efficiency by using scalable, cost-effective methods, but at what cost?

There are more questions than answers around using AI effectively in the selection process with growing concerns around fairness, candidate experience (CX), and the long-term impact on employer brand. Over-reliance on AI risks alienating candidates and can also harm an employer’s brand and reduce their ability to attract top talent. Capterra’s 2024 Job Seeker AI Survey found that 60% of candidates prefer applying to jobs where they can interact with a human at some stage of the hiring process. And 58% of candidates are more likely to apply if the application clearly states that all hiring decisions are made by humans.

Talent leaders are learning that AI alone won’t solve their recruitment challenges. The opportunity lies in balance. Use AI for speed and efficiency, but keep humans at the heart of the hiring process.

DEI is at a crossroads

Diversity, equity and inclusion (DEI) efforts are under pressure, with some high-profile examples of companies pulling back their efforts due to shifting political positions and legal concerns.

While some organisations are reassessing their DEI initiatives in light of these external pressures, the need for fairness, transparency, and inclusive hiring remains as important as ever. This is reflected in the recent Talent Labs Annual Report which lists DEI as one of the top three priorities for Talent Acquisition teams in 2025.

And the business case is clear - diverse teams fuel innovation, drive better decisions and boost performance. Regardless of the broader political debate, continuing to build diverse teams and ensuring equitable hiring processes should remain a priority for businesses committed to long-term success.

Skills-based hiring is evolving

Hiring for skills has made the headlines in recent years. By prioritising skills over degrees or work history, organisations can unlock untapped talent, improve role alignment, and drive quality hires. This can work well, particularly in specialist areas such as IT where specific skills shortages remain a challenge.

According to LinkedIn, 93% of Talent Acquisition professionals believe accurately assessing a candidate’s skills is crucial for improving the quality of hire, but take-up has been mixed.

One issue is that many companies struggle with where to start. Defining “critical skills” and aligning hiring processes with them is challenging and disruptive.

This isn’t a reason to stop. It’s a reason to adapt.

Think about agility and the ability to learn as skills in their own right and focus on potential, not just previous experience. Do this, and you might uncover top talent others are overlooking.

Employer brand must match reality

A strong employer value proposition (EVP) is no longer a nice-to-have. It’s essential. Today’s candidates are savvy. They do their research, read reviews, and expect authenticity and fair treatment. If your EVP sounds great, but feels hollow in practice, it can damage trust and impact your ability to attract the right talent.

Think about how your selection process aligns with, and supports, your employer brand. Are you providing applicants with a realistic preview of your culture and environment? Do you lay out from the start what’s involved in the process? Do you stick to your timescales and provide feedback at each stage?

If you want to keep talent engaged throughout the selection process, now is the time to think about how you present yourself to the market and the experience you are providing to your candidates.

Data makes for better decisions

Recruitment is becoming increasingly data-driven. Time to hire, quality of hire and candidate experience have been standard measures for many years. According to The Firm’s 2024 Annual Report, the importance placed on data and metrics has grown significantly from being a top three priority for 11% of respondents in 2023 to 31% in 2024. Yet, gaps remain. In the same survey, only 26% track cost per hire, and 8% track time to offer.

With AI tools offering more insights than ever, now’s the time to get smarter about what you measure and why. Don’t track for the sake of it. Focus on additional metrics that reflect candidate quality, process efficiency and hiring team capability and tie these back to outcomes that truly impact the business.

Final thoughts

Hiring today is complex. There’s no one-size-fits-all solution. But the companies that will lead the market are those that act with intent, using AI with care, backing up values with action, and building future-ready teams from the inside out.

Need support navigating these recruitment trends? Morgan Philips can help. Get in touch to learn how our tailored solutions support smarter hiring and sustained growth.